HB 295

  • Illinois House Bill
  • 102nd Regular Session
  • Introduced in House Apr 23, 2021
  • Passed House Apr 22, 2021
  • Senate
  • Governor

Prepaid Funeral/Burial

Abstract

Amends the Illinois Insurance Code. Provides that no provision of the Illinois Insurance Code or any other law prohibits an insured under any policy of life insurance, or any other person who may be the owner of any rights under such policy, from making an irrevocable assignment of all or any part of his or her rights and privileges, not to exceed the purchase price of the prepaid burial contract, under the policy to a funeral home and to have an individual policy issued in accordance with specified provisions of the Illinois Insurance Code. Amends the Illinois Funeral or Burial Funds Act. Provides that nothing shall prohibit the purchaser of a life insurance policy or tax-deferred annuity contract for the purpose of funding a pre-need contract from irrevocably assigning ownership of the policy or annuity to a funeral home (rather than person) or trust for the purpose of obtaining favorable consideration for Medicaid, Supplemental Security Income, or another public assistance program, as permitted under federal law. Amends the Illinois Public Aid Code. In a provision requiring the Department of Healthcare and Family Services to exempt certain prepaid funeral or burial contracts from consideration when making an eligibility determination for medical assistance, provides that at any time after submitting an application for medical assistance and before the Department makes a final determination of eligibility, an applicant may use available resources to purchase one of the exempted prepaid funeral or burial contracts. House Committee Amendment No. 1 Deletes reference to: 215 ILCS 5/245.3 new 225 ILCS 45/2a Replaces everything after the enacting clause. Reinserts the provisions of the introduced bill but without the amendatory changes made to the Illinois Insurance Code and the Illinois Funeral or Burial Funds Act. House Floor Amendment No. 2 Adds reference to: 215 ILCS 5/245.3 new 225 ILCS 45/1a from Ch. 111 1/2, par. 73.101a 225 ILCS 45/2a 225 ILCS 45/2b new Replaces everything after the enacting clause. Amends the Illinois Insurance Code. Provides that an insured or any other person who may be the owner of rights under a policy of life insurance may make an irrevocable assignment of all or a part of his or her rights under the policy to a funeral home in accordance with a specified provision of the Illinois Funeral or Burial Funds Act. Provides that a policy owner who executes a designation beneficiary form irrevocably waives and cannot exercise certain rights, including the right to collect from the insurance company the net proceeds of the policy when it becomes a claim by death and the right to collect or receive income, distributions, or shares of surplus, dividend deposits, refunds of premium, or additions to the policy. Amends the Illinois Funeral or Burial Funds Act. In a provision concerning pre-need contracts funded through the purchase of a life insurance policy or tax-deferred annuity contract, provides that nothing shall prohibit the purchaser from irrevocably assigning ownership of the policy or annuity to a person or trust or from irrevocably assigning the benefits of the policy or annuity to a funeral home for the purpose of obtaining favorable consideration for Medicaid, Supplemental Security Income, or another public assistance program. Provides that the form prepared by the Department of Healthcare and Family Services or by the insurance company shall provide for an irrevocable designation of beneficiary of one or more life insurance policies. Requires the insured or any other person who may be the owner of rights under the policy of whole life insurance to sign a guaranteed pre-need contract with the provider that describes the cost of the funeral goods and services to be provided upon the person's death, up to $6,774, in addition to the purchase of burial spaces as defined under the Act. Requires the licensee to annually report certain information to the Comptroller. Requires the proceeds of the life insurance policy to be paid to the provider and disbursed in a certain order upon the death of the insured. Amends the Medical Assistance Article of the Illinois Public Aid Code. In a provision requiring the Department of Healthcare and Family Services to exempt certain prepaid funeral or burial contracts from consideration when making an eligibility determination for medical assistance, provides that at any time after submitting an application for medical assistance and before the Department makes a final determination of eligibility, an applicant may use available resources to purchase one of the exempted prepaid funeral or burial contracts. Exempts up to $6,774 (rather than $5,874) in funds under an irrevocable prepaid funeral or burial contract when determining an individual's resources and eligibility for medical assistance. Provides that existing life insurance policies are exempt if there has been an irrevocable declaration of proceeds at the death of the insured. Requires the insured person to sign an irrevocable designation of beneficiary form declaring that any amounts payable from the policies not used for funeral goods and services shall be received by the State up to an amount equal to the total medical assistance paid on behalf of the person with any remaining funds paid to a secondary beneficiary (if any) listed on the policy.

Bill Sponsors (14)

Votes


Actions


Jan 10, 2023

House

Session Sine Die

May 21, 2021

Senate

Rule 3-9(a) / Re-referred to Assignments

May 13, 2021

Senate

To Licensed Activities- Special Issues

May 07, 2021

Senate

Sponsor Removed Sen. Jacqueline Y. Collins

May 04, 2021

Senate

Added as Alternate Co-Sponsor Sen. Jason A. Barickman

Senate

Assigned to Licensed Activities

Apr 30, 2021

Senate

Added as Alternate Co-Sponsor Sen. Karina Villa

Apr 29, 2021

Senate

Added as Alternate Co-Sponsor Sen. Laura Fine

Senate

Added as Alternate Co-Sponsor Sen. John Connor

Senate

Added as Alternate Co-Sponsor Sen. Adriane Johnson

Apr 28, 2021

Senate

Added as Alternate Co-Sponsor Sen. Jacqueline Y. Collins

Senate

Added as Alternate Chief Co-Sponsor Sen. Jason Plummer

Apr 23, 2021

Senate

Placed on Calendar Order of First Reading

Senate

Referred to Assignments

Senate

First Reading

Senate

Chief Senate Sponsor Sen. Sara Feigenholtz

Senate

Arrive in Senate

Apr 22, 2021

House

Third Reading - Short Debate - Passed 114-000-002

House

Added Co-Sponsor Rep. Amy Grant

House

House Floor Amendment No. 3 Tabled Pursuant to Rule 40

House

House Floor Amendment No. 2 Adopted

House

Placed on Calendar Order of 3rd Reading - Short Debate

Apr 21, 2021

House

House Floor Amendment No. 2 Recommends Be Adopted Insurance Committee; 015-000-000

House

House Floor Amendment No. 3 Rules Refers to Insurance Committee

House

Second Reading - Short Debate

House

Held on Calendar Order of Second Reading - Short Debate

Apr 20, 2021

House

House Floor Amendment No. 2 Rules Refers to Insurance Committee

House

House Floor Amendment No. 3 Referred to Rules Committee

House

House Floor Amendment No. 3 Filed with Clerk by Rep. Natalie A. Manley

Apr 16, 2021

House

Added Co-Sponsor Rep. Joyce Mason

Apr 15, 2021

House

House Floor Amendment No. 2 Filed with Clerk by Rep. Natalie A. Manley

House

Added Co-Sponsor Rep. Chris Miller

House

House Floor Amendment No. 2 Referred to Rules Committee

Apr 14, 2021

House

Added Co-Sponsor Rep. Katie Stuart

Mar 18, 2021

House

Placed on Calendar 2nd Reading - Short Debate

Mar 15, 2021

House

Added Chief Co-Sponsor Rep. Jonathan Carroll

House

Do Pass as Amended / Short Debate Insurance Committee; 014-005-000

House

House Committee Amendment No. 1 Adopted in Insurance Committee; by Voice Vote

House

Added Chief Co-Sponsor Rep. Anthony DeLuca

Mar 11, 2021

House

House Committee Amendment No. 1 Rules Refers to Insurance Committee

Mar 10, 2021

House

House Committee Amendment No. 1 Filed with Clerk by Rep. Natalie A. Manley

House

House Committee Amendment No. 1 Referred to Rules Committee

Feb 23, 2021

House

Assigned to Insurance Committee

Jan 29, 2021

House

First Reading

House

Referred to Rules Committee

Jan 26, 2021

House

Filed with the Clerk by Rep. Natalie A. Manley

Bill Text

Bill Text Versions Format
Introduced HTML PDF
Engrossed HTML PDF
House Amendment 001 HTML PDF
House Amendment 002 HTML PDF
House Amendment 003 HTML PDF

Related Documents

Document Format
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Sources

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